Keneally backflip fails to silence critics

NSW Premier
Kristina Keneally
’s dramatic backflip on a parliamentary inquiry into the state’s $5.3 billion power sale has been branded an “act of hypocrisy" by the opposition because it leaves witnesses exposed to court action while government partici­pants run no legal risk.

As news of her about-face broke yesterday morning, Ms Keneally was 800 kilometres from the Macquarie Street heat, paying a flying visit to Goodooga, an outback town in the state’s far north-west, threatened by encroaching flood­waters from Queensland.

On the banks of a creek outside town, an Akubra-toting, RM Williams-wearing Ms Keneally said she would appear before the inquiry “if they’ll have me".

“I am the Premier of NSW, the buck stops with me," she said.

Treasurer
Eric Roozendaal
, who ran the sale process, is already on a list of 16 witnesses to be called by the upper house inquiry.

Ms Keneally’s backdown in agreeing to appear before the inquiry was all the more remarkable as she had spent the past few weeks arguing it was unconstitutional and should not proceed.

In Sydney, Opposition Leader Barry O’Farrell was calling for the Premier to “unprorogue" parliament, which shut early on December 22. This would allow the inquiry to be properly constituted and would ensure the evidence of other witnesses was privileged, or immune from legal proceedings for breach of confidence, defamation and other court action.

Legal advice produced by the Premier on Monday from Crown Solicitor Ian Knight cast doubt on whether witnesses to an inquiry, scheduled for January 17 and 18, after Parliament was prorogued, would be protected by parliamentary privilege.

Related Quotes

Company Profile

The opinion is at odds with one given by the clerk of the NSW Parliament, Lynn Lovelock.

“The only way Kristina Keneally is going to redeem herself is if she removes any of those legal doubts she’s raised by writing to the governor, or asking the governor to reopen Parliament," Mr O’Farrell said.

Greens MP David Shoebridge, a member of the standing committee conducting the inquiry, said the eight directors of the state-owned Eraring Energy and Delta Electricity who resigned in protest on the eve of the deals were most at risk. “As I understand it they’re particularly concerned about potential actions for breach of commercial confidence and full parliamentary privilege would ensure they’re protected," he said.

He said calls to “unprorogue" parliament had allowed Ms Keneally to “hide behind" an argument about the mechanics of reversing the shutdown.

The Premier said yesterday there was no process for reversing the proroguing of Parliament. “There is only one process which would work, which would be to recall Parliament, have it open and have a new session and quite frankly that’s not necessary given that the Treasurer, the Premier and key members of the bid project team will front this committee and answer their questions," Ms Keneally said.

But Mr Shoebridge said Parliament could be recalled with a sitting date set for February, which would not need to be used. “Once the inquiry has handed down its report on January 31, well before Parliament actually sits, the Premier can send another letter to the governor and have the Parliament prorogued again," he said.

It was difficult to see what the Premier’s appearance at the inquiry would add “other than more spin from the ALP", the Greens MP said.

Ms Keneally said the sale of the Eraring and Delta West gentrader assets and retail electricity businesses to Origin Energy and TRUenergy, rammed through at the 11th hour on December 14 after Mr Roozendaal drafted in new directors to the state-owned companies, “garnered a very good result for the NSW taxpayer".

“I’ve always said that these electricity transactions stand up to scrutiny," she said.

But she had “underestimated the level of public interest in the deals", and understood that voters wanted the transactions scrutinised before the March 26 state election. “I acknowledge that, and that’s why I say I am willing and able to stand up in front of this committee, to their scrutiny, and answer any questions they have about the electricity transactions."

The successful bidders for the NSW electricity assets have not been approached to appear at the inquiry.